(Reference Translation)

Financial Results Briefing
for the Six Months ended September 30, 2022

November 22, 2022
Securities
identification
証券コード: 7247 code: 7247
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

Financial Results Briefing
November 22, 2022 Tuesday 14:00-15:00
at Mikuni Building

Agenda
1. Consolidated Financial Results for the Six Months ended
September 3, 2022
2. Forecast for the Fiscal Year ending March 31, 2023
3. Mid-to-long term Initiatives and Related Topics
4. Q&A Session

Speakers

Hisataka IKUTASatoshi FUJIMORI
Hiroshi IKEGAMI

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

President, CEO & COO
Director, Senior Executive Officer, CFO
Executive Officer,
General Manager, Corporate Planning2

Consolidated Financial Results
for the Six Months
ended September 30, 2022

Note
Our fiscal year begins on April 1 of each year and ends on March 31 of the following year.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

3

6 Months ended Sept. 30, 2022

Mikuni's Business Segments
Net Sales and Composition Ratio
by Business Segment

Other Business
Welfare vehicles, Nursing equipment

Turf-Care
Equipment
Sales of Turf-care equipment etc.

Aircraft Parts
Import and Sales
Precision forged products, etc.

Household Appliances
Device Products

3%
5%
3%
7%

82%

Automotiverelated Products

OthersTurf-Care1,177

2,339
AircraftHouse 1,258
3,138≫ for Four-wheelers
AUTOMOBILE

Apr. – Sept. 2022

CONSOLIDATED
SALES44,810MILLION YEN≫ for Two-wheelers
MOTORCYCLE

Automotive

36,897

Safety shut-off devices for gas
appliances, gas control devices andother various flow control devices
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Electronic Fuel Injection Systems
Carburetors, Pumps

46 Months ended Sept. 30, 2022

Financial Highlights

Financial performance bottomed out in the July-September period and is expected torecover in the months ahead. Efforts to strengthen competitiveness will continue.
••

Sales, especially in the automotive-related products business, exceeded the same period of theprevious year. As the sales were significantly affected by foreign currency conversion, the contribution
to profit was limited.
The company will continue its efforts to strengthen profitability as well as its initiatives to enhancecompetitiveness and optimal allocation of management resources under its medium-term
management plan, with assuming the current business environment will continue.

OPERATING RESULTS BY SEGMENT
Automotive Products Business• Profit decreased due to the impact of prolonged parts shortages at customers production in ASEAN andaffected by sluggish sales of final products in China and the zero-corona policy of the Chinese government.
• Although the earnings were strong in India, operating income for this segment declined 63.1% yoy due tosignificant negative factors such as sharp rises in raw material prices, transportation costs, fuel costs, etc.
Household Appliances Device Products Business• In addition to intensified competition in the market due to soaring energy prices, the business was also
affected by the slow housing market in China.
• Operating loss due to the impact of higher raw material prices, etc.
Aircraft Component Import and Sales Business• In our commercial aircraft business, both sales and income increased due to a recovery trend in domestic airtransportation demand and an expansion of the lineup of products we handle.

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5

6 Months ended Sept. 30, 2022

Financial Highlights*continued from the previous page

OPERATING RESULTS BY SEGMENT
Turf-care Equipment, etc. Sales Business• Sales and income increased due to steady capital investment by customers, especially golf courses,
and successful focus on after-sales services.
Other Businesses• Operating loss was recorded due to the impact of difficulties in procurement of vehicles for installation,etc., although sales of welfare and nursing care equipment increased.

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6

6 Months ended Sept. 30, 2022

Summary of Income Statement(Millions of yen)

6 months
ended Sept.
30, 2021

6 months
ended Sept.
30, 2022

ChangeForecast for FY2022 ended
March, 2023

Initial

Revised39,556
1,902
1,685

44,8105,254724 (1,178)429 (1,256)

95,0003,500
3,100

95,1002,800
2,500

Net income attributable toowners of the parent

748(587) (1,335)

1,400

900

Net income per share (yen)

22.33
5.00

(17.49) (39.82)
5.00
ー

41.71
10.00

26.82
10.00

Average rate for the period

107.82

123.14Year-end

110.58136.68Net sales
Operating income
Ordinary income

Dividend per share (yen)Exchange rate against the U.S.
dollar (yen)Note:
1. Amounts less than one million yen are discarded.
2. Figures in parentheses are negative values.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

Assumedexchange
rate:

125

Assumedexchange rate:

133

7

Net Sales and Operating Income
by Business Segment

6 Months ended Sept. 30, 2022

Net Sales and Operating Income by Business Segment (Apr. – Sept. , 2020 and 2021)
6 Months
ended September, 2021
Net Sales

Operating
Income6 Months
ended September, 2022
Net Sales

Amount4,421

13.6％ (1,305) (63.1％)(129)(4.0％)(361)―

638 103.1％

423

―

212

10.0%

82

―

111

10.5％

(17)

―

Sales ratio

Sales ratio

Operatingincome ratio

Automotive
Products

32,476

2,068

36,897

763

82.1％

6.4％

82.3％

2.1％

HouseholdAppliances

3,267

(165)

3,138

(526)

8.3％

―

7.0％

―

Aircraft
Component

619

(4)

1,258

419

1.6％

―

2.8％

33.3

2,127

7

2,339

89

5.4％

0.3％

5.2％

3.8％

1,065

(3)

1,177

(21)

2.7％

―

2.6％

―

39,556

1,902

44,810724

Turf-Care
Equipment
Other Business
Total(Note)

4.8％

Change in Operating
IncomeOperatingincomeOperatingincome ratio(Millions of Yen)

Changein Net Sales

5,254

Ratio

AmountRatio

13.3％ (1,178) (61.9％)

1.6％

1. Amounts less than one million yen are discarded.
2. Due to the application of the "Accounting Standard for Revenue Recognition" and other standards, changes
from the previous period are shown as "-".
3. Figures in parentheses are negative values.

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8

6 Months ended Sept. 30, 2022

30,000Transition of Quarterly Net Sales
and Operating Income■Automotive Products Business ■Household Appliances Device Products Business■Aircraft Parts Import and Sales Business ■Turf-Care Equipment Sales Business■Other Business
24,173

Net Sales

25,00020,00019,183

20,373

19,972

21,259(Millions of yen)
25,14525,145

20,637

15,00010,0005,000

Operating Income (Loss)0

Forecast

2,000
1,500

1,183

1,000

719

901

514

500

415

308

1Q
FY20222Q
FY2022

1,038

1,038

2H ave.
FY2022

2H ave.
FY2022

0
-500

1Q

2Q

3Q

Note:
FY2021
FY2021
FY2021
Amounts less than one million yen are discarded.
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4Q
FY20219

(Reference)

Comparison of Net Sales and Operating Income in Automotive Product Segmentwith the Last Two Fiscal Years (Previous Accounting Standard)

ASEAN

12,532

India

11,299

9,353

98

90

100

FY2020

FY2021

10,174

243

6,740

67
FY201916,404

12,355

8,337

100(Millions of yen)

FY2019FY2022139
FY2020151

FY2021

FY2022(Forecast)(Forecast)

Greater China

Europe & Americas
7,886
100

FY20197,435
94

FY20209,358

11910,661

9,122

8,157

135

FY2022FY2019FY2020(Forecast)

Note: Amounts less than one million yen are discarded.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

10,667117

100
89

FY2021

8,816

Japan
33,919 27,061
100

97

FY202180

FY2022(Forecast)

FY2019FY202030,11389

FY202130,84391

FY2022(Forecast)

10

6 Months ended Sept. 30, 2022

Summary of Balance Sheet(Millions of yen)

End of March2022

End of September
2022

Changein amount

Current assets

51,01058,412

7,402

Fixed assets

45,906

48,6382,731

Total assets

96,917

107,051

10,133Current liabilities

33,55341,361

7,808

Fixed liabilities

31,44430,780(663)

Net assets

31,91834,9082,989

Total liabilities and net
assets

96,917

107,051

10,133

Shareholders' equity ratio

32.1％

31.8％

―

925.67yen

1,013.79yen―

Net assets per share(Note) 1. Amounts less than one million yen are discarded.

2. Figures in parentheses are negative values.

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11

Transition of Cash Flow

6 Months ended Sept. 30, 2022

Operating activities turned negative by -580 million yen, mainly due to increased demand for funds
associated with inventories. In investing activities, capital expenditures amounted to -3.0 billion yen.
Free cash through the first half was minus 3.46 billion yen.
(Millions of yen)

10,0005,000

9,423 5,611

2,706

5,121

5,078

(1,485)02,389(2,876)(3,812)(6,607)(4,608)FY2017FY2018(2,371)(2,875)(6,997)(5,000)(10,000)

(584)

318

FY2019Cash flow from operating activities(3,459)(2,558)Fy2020

FY2021

Cash flow from investment activities

2Q FY2022
Free cash flow

1. Amounts less than one million yen are discarded.
2. Figures in parentheses are negative values.
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12

Depreciation, Capital Investment
and R&D Expenses

6 Months ended Sept. 30, 2022
(Millions of yen)

Depreciation and Capital Investment

7,411

8,000

Depreciation

7,364

Capital Investment

6,570

7,000
6,000
5,000
4,000

4,790

4,762

4,651

4,621

4,338

3,284

3,163

3,000
2,000
2Q
2,337

1,000
0

FY2018(Millions of yen)

7,000
6,000

FY2019FY20202Q
1,340

FY2021

2Q
2Q
2,407 2,680

FY2022 (Forecast)

R&D Expenses

6,019

5,935
5,081

5,000

5,368

5,650

4,000
3,000
2,000
1,000
0

FY2018FY2019FY2020

2Q
2,596

2Q
2,668

FY2021

FY2022 (Forcast)13

6 Months ended Sept. 30, 2022

Summary of Balance Sheet

Transition of Capital Ratio
40.0%
30.0%

33.1%
28.6%

20.0%

29.4%

32.1%

31.8%

10.0%
0.0%

March, 2019

March, 2020

March, 2021

March, 2021

Transition of Interest-Bearing Debt

(Millions of yen)

50,00040,00030,00030,02733,62736,568March, 2022

35,36339,93220,00010,0000March, 2019
March, 2020
March, 2021
Note: Amounts less than one million yen are discarded.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

March, 2022

September, 2022

14

Forecast for the Fiscal YearEnding March 31, 2023

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15

Summary of Income Statement

Forecast for
FY ending March 31, 2023

FY2020 ended
March, 2021

FY2021 ended
March, 2022

Forecast for
FY2022 ending
March, 2023

86,96280,78995,100Operating income

569

3,318

2,800

Ordinary income

597

3,137

2,500

Net income attributable to owners of
the parent

(125)

1,318

900

Net income per share (yen)(3.73)

39.31

26.82

5.00

10.00

10.00

Average rate for the period

106.76109.90Year-end

103.50115.02(Millions of yen)
Net sales

Dividend per share (yen)Exchange rate against the U.S. dollar(yen)Assumedexchange rate:133

1. Amounts less than one million yen are discarded.
2. Figures in parentheses are negative values.
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16

Forecast for
FY ending March 31, 2023

Six-Monthly Performance Trends

April September
2021

October 2021 –March 2022

April –
September
2022

Forecast
October 2022
– March 2023

(Millions of yen)

39,556

41,23344,81050,290Operating income

1,902

1,416

724

2,076

Ordinary income

1,685

1,452

429

2,071

748

570

(587)

1,487

Net sales

Net income attributable to ownersof the parent

Note:
1. Amounts less than one million yen are discarded.
2. Figures in parentheses are negative values.
3. Since " Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and others have been applied from the
beginning of fiscal year ended March 31, 2022, the above results for the same period are after the application of the said
accounting standard and others. The figures for "Reference" are the figures based on the previous accounting standard.
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17

Net Sales and Operating Income
by Business Segment

Forecast for
FY ending March 31, 2023

Net Sales and Operating Income by Business Segment (FY2021 and FY2022)(Millions of yen)
Automotive
Products
HouseholdAppliances
Aircraft
Component
Turf-care
Equipment

Other Business
Total

FY2021
ended March, 2022

FY2022ending March, 2023

Net Sales

Net Sales

Sales ratio

Operating
IncomeOperatingincome ratio

Sales ratio

Change in Operating
IncomeOperatingincomeAmountRatio

13,55420.5%(667) (18.7%)(153)(2.3%)

(158)

―

584

36.2%

183

64.2％

722

18.6%

83

―

(397) (17.3%)

40―

Operatingincome ratio

66,2453,567

79,800

2,900

82.0%

5.4%

83.9%

3.6%

6,753

(491)

6,600

(650)

8.4%

―

6.9%

―

1,615

286

2,200

470

2.0%

17.7%

2.3%

21.4%

3,877

(33)

4,600

50

4.8%

―

4.8%

1.1%

2,297

(10)

1,900

30

2.8%

―

2.0%

1.6%

80,7893,318

95,100

2,800

4.1%

Changein Net Sales

14,31017.7%

AmountRatio(518) (15.6%)

2.9%

Note: 1. Amounts less than one million yen are discarded.

2. Figures in parentheses are negative values.

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18

Mid- and Long-term Initiatives
and Related Topics

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19

Mobility business in India leads the growth of Mikuni Group Leveraging Mikuni's strengths in India, the world's largest motorcycle market
 Contribute to the growth of the Indian automobile market with our
FY2018
Consolidated
Net Sales

India,Net Sales in India（Millions of yen） 地域別売上高（インド）（単位:百万円）

7%

18,00016,00084.6
billionyen

アセアン

14,00053%

中華圏

12,00010,000欧米

10 billion yen increase from India

8,000

India,

6,000

FY2023
Consolidated
Net Sales

17%

4,000
2,000
0

95
billionyen

ASEAN

FY2018FY2019FY2020

FY2021

FY2022

FY2023

Forecast Mid-term
visiontargetCopyright(c) 2021 MIKUNI CORP. All Right Reserved.

Japan,

Greater
China

Europeand theAmericasJapan,
44%

20

Topics: Business Expansion in India
 Expanding production for fuel injection system for motorcycles in India

Global Motorcycle Market(Volume Share by Region)

Indian Motorcycle Market(Volume Share by Maker)

 Increasing production of VVT (Variable Valve Timing)* in India
With a capital investment of 200 million rupees (approx. 350 million yen)
VVT production capacity will be increased by more than 60% to beinstalled in customers' new models* VVT is a product that helps reduce CO2 emissions and exhaust emissions, and Mikuni is
an expert in this field. We produce it at our plants in Japan, China, Thailand, and India.
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21

Products for EV to be 70% by FY2030
We will increase the sales ratio of EV products to more than 70% of our automobile(four-wheeler) business segment by 2030
（Examples of products developed for EVs）

FY2021
EV
10%
ICE
90%

Coolant Control Valvefor Motor Battery Inverter

Electronic Parking
Lock Actuator
for e-Axle

ICE

FY203030%

EVElectronic Oil Pump
Electric Vacuum Pump
for generating negative
pressure for brake system

e-Axle lubrication andcooling70%

Accelerating development through the Model Based Development (MBD)
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22

Topics: New Businesses for EV, Activities for the Next Generation
 New businesses for EV
June:
Began production of electric oil pumps for light EV trucks.
August: Began mass production and supply of accelerator pedal modules to a BEV(Battery Electric Vehicle) manufacturer in California, U.S.A.

 New production line for electric oil pumps has been installed in
ShanghaiIn addition to Japanese EV manufacturers, we are also meeting
demand from Chinese E-Axle (electric vehicle drive unit)
manufacturers in China.

 New business alliance
We have reached an agreement with TBK Co., Ltd. to study possibilities of a businessalliance, including joint development, in the field of thermal management forcommercial vehicles.

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23

Disclaimer
1. This document has been prepared on a consolidated basis.
2. This document summarizes the financial results and earnings forecasts that have alreadybeen announced, and is provided solely for the purpose of providing information toinvestors, and is not intended as a solicitation to buy or sell.
3. The forward-looking statements, including earnings forecasts, contained in this document
are based on information available as of the date of the announcement, and actual
results may differ from these forecasts due to various factors.
4. Statements regarding business performance, etc., have been prepared based on various
data that are believed to be reliable, but we do not guarantee their accuracy.

For more information, please contact
Corporate Planning Department
Corporate Division
Phone: +81-3-6895-0038
Mikuni Corporation
13-11, Sotokanda 6-chome, Chiyoda-ku, Tokyo 101-0021, Japan
URL https://www.mikuni.co.jp/
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